Palm oil extends gains on weaker ringgit
15.05.2018 (The Edge Markets MY) - KUALA LUMPUR (May 15): Malaysian palm oil futures rose on Tuesday evening for a second straight session of gains, supported by a weaker ringgit and slight strength in CBOT soyoil futures.
Weakness in the ringgit typically boosts demand by making the tropical oil cheaper for holders of foreign currencies. The ringgit weakened by 0.15% to 3.9540 per dollar at the end of the trading day.
The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.7% at RM2,432 (US$615.07) a tonne at the close of trade.
Palm oil jumped nearly 3% to a one-month high in intraday trade on Monday, the first session of trade since the stunning election defeat of a coalition that ruled the country for six decades. It closed with a gain of 1.5%.
Trading volume stood at 49,160 lots of 25 tonnes each on Tuesday evening.
"The ringgit was still weak and a positive CBOT soyoil also lent a helping hand," said a futures trader in Kuala Lumpur.
The market rose despite reports of weaker exports of Malaysian palm oil products on Tuesday, traders said.
Exports for May 1-15 fell 14.9% from a month earlier, said inspection company AmSpec Agri Malaysia.
Cargo surveyor Societe Generale de Surveillance, meanwhile, reported a 13.7% drop for the same period.
Palm oil could retest resistance at RM2,466 a tonne, a break above which could lead to a gain to the next resistance at RM2,475, said Reuters market analyst for commodities and energy technicals, Wang Tao.
In related oils, the Chicago July soybean oil contract edged up by 0.1% while September soybean oil on China's Dalian Commodity Exchange was down 0.7%.
The Dalian September palm oil contract slipped by 0.2%.
Palm oil is affected by movements in rival edible oils competing for a share in the global vegetable oils market.
Palm, soy and crude oil prices at 1103 GMT
|
Contract |
Month |
Last |
Change |
Low |
High |
Volume |
|
MY PALM OIL |
MAY8 |
2374 |
+4.00 |
2374 |
2374 |
7 |
|
MY PALM OIL |
JUN8 |
2425 |
+18.00 |
2402 |
2435 |
4021 |
|
MY PALM OIL |
JUL8 |
2437 |
+16.00 |
2407 |
2437 |
18969 |
|
CHINA PALM OLEIN |
SEP8 |
5074 |
-12.00 |
5066 |
5104 |
258780 |
|
CHINA SOYOIL |
SEP8 |
5766 |
-42.00 |
5748 |
5812 |
323488 |
|
CBOT SOY OIL |
JUL8 |
31.29 |
+0.04 |
31.17 |
31.36 |
4572 |
|
INDIA PALM OIL |
MAY8 |
659.40 |
+0.00 |
656.00 |
660 |
568 |
|
INDIA SOYOIL |
MAY8 |
758.3 |
+0.20 |
754.95 |
759.5 |
4070 |
|
NYMEX CRUDE |
JUN8 |
71.60 |
+0.64 |
70.79 |
71.69 |
160597 |
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in US cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in US dollars per barrel
(US$1 = RM3.9540)
(US$1 = 67.8900 Indian rupees)
(US$1 = 6.3555 Chinese yuan)